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Plaintiff Riot Games, Inc. (“Riot”) alleges as follows: PRELIMINARY STATEMENT 1. Riot develops, publishes, distributes, and maintains the immensely popular game titled “League of Legends” (“LoL”). Riot owns the copyright and all related rights in LoL. Riot also owns registered trademarks in the word mark “LEAGUE OF LEGENDS” and in LoL’s distinctive and original logo. 2. This lawsuit involves the ongoing, willful and bad faith infringement of Riot’s intellectual property rights, including its copyrights and trademarks, by Shanghai Moonton Technology Co, Ltd. (“Moonton”) and those working in concert with it. Moonton has developed and distributed a succession of mobile games designed to trade off Riot’s wellknown and valuable intellectual property: Magic Rush: Heroes, Mobile Legends: 5v5 MOBA, and Mobile Legends: Bang bang (collectively, the “Infringing Games”). Each of the Infringing Games contains (or at one time contained) a vast array of elements that were directly and deliberately appropriated from LoL, including but not limited to LoL’s characters, artwork, map designs, and unit and monster designs. And, to add insult to injury, Moonton marketed and distributed certain of its games with a logo that is confusingly similar to Riot’s LoL logo, using the exact same font and color scheme as Riot’s LoL logo. 3. Moonton not only knows that its conduct is unlawful, but has engaged in overt gamesmanship. Moonton created products that it knew to be infringing, waited to receive an infringement claim from Riot, and in response to that claim made only the most minimal adjustments while continuing to knowingly infringe. Most notably, after Riot discovered Mobile Legends: 5v5 MOBA and notified Google that the game was infringing, Moonton purported to remove the game from the Google Play store. But that was simply a subterfuge. Immediately after removing Mobile Legends: 5v5 MOBA, Moonton (without notifying Riot or Case 2:17cv04986 Document 1 Filed 070617 Page 2 of 44 Page ID :2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell 28 Silberberg Knupp LLP 2 Google) released a “new” game, Mobile Legends: Bang bang. However, Mobile Legends: Bang bang was not a new game at all, but in fact was the exact same game as Mobile Legends: 5v5 MOBA, with some modest changes. This ploy of “hide the ball” was part of Moonton’s deliberate business strategy, designed to hamper Riot’s ability to protect its intellectual property. Meanwhile, even though Moonton now has received multiple infringement notices from Riot, it continues to infringe and to profit from its infringement. 4. Moonton’s conduct has harmed Riot and its business, while enriching Moonton. Riot is entitled to monetary damages and injunctive and other equitable relief. THE PARTIES 5. Riot is a corporation duly organized and existing under the laws of the State of Delaware, with its principal place of business in Los Angeles, California. 6. Riot is informed and believes, and on that basis alleges, that Moonton is a company based in the Huangpu district of Shanghai, China, with its principal place of business at Flat A, Room 227, No 103, Nantangbang Road. Riot is informed and believes that Moonton developed each of the Infringing Games, that Moonton formerly published and distributed Mobile Legends: 5v5 MOBA, and that Moonton currently publishes, distributes, maintains, and updates Mobile Legends: Bang bang. 7. The true names and capacities, whether individual, corporate, associate, or otherwise, of the defendants sued herein as Does 110 inclusive, are unknown to Riot, which has therefore sued said defendants by such fictitious names. These defendants may include individuals whose real identities are not yet known to Riot, but who are acting in concert with one another, often in the guise of Internet aliases, in committing the unlawful acts alleged herein. Riot will seek leave to amend this complaint to state their true names and capacities once said defendants’ identities and capacities are ascertained. Riot is informed and Case 2:17cv04986 Document 1 Filed 070617 Page 3 of 44 Page ID :3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell 28 Silberberg Knupp LLP 3 believes, and on that basis alleges, that all defendants sued herein are liable to Riot as a result of their participation in all or some of the acts set forth in this complaint. (All of the aforementioned defendants collectively are referred to herein as “Defendants.”). 8. Riot is informed and believes, and on that basis alleges, that at all times mentioned in this complaint, each of the Defendants was the agent of each of the other Defendants and, in doing the things alleged in this complaint, was acting within the course and scope of such agency. JURISDICTION AND VENUE 9. This is a civil action seeking damages, injunctive relief, and other equitable relief, under the Copyright Act, 17 U.S.C. § 101 et seq. 10. This Court has subject matter jurisdiction over Riot’s claims for copyright and trademark infringement pursuant to 28 U.S.C. §§ 1331 and 1338(a). Additionally, this Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332 because the amount in controversy exceeds the sum or value of 75,000, and the action is between a California citizen and citizens of a foreign jurisdiction. 11. This Court also has personal jurisdiction over Defendants because they have purposefully directed their activities at the United States, and at California in particular, have purposefully availed themselves of the benefits of doing business in California, and have established a continuing presence in California. Riot is informed and believes, and on that basis alleges, that, without limitation: (a) Defendants conduct extensive and ongoing business with customers in the United States and the State of California; (b) Defendants distribute the Infringing Games in the United States and the State of California through the services provided by at least two California companies, Apple, Inc. (“Apple”) and Google, Inc. (“Google”); Case 2:17cv04986 Document 1 Filed 070617 Page 4 of 44 Page ID :4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell 28 Silberberg Knupp LLP 4 (c) Defendants have directed their unlawful activities at Riot, knowing and intending that Riot would be harmed by Defendants’ conduct in the United States and primarily in the State of California, where Riot has its principal place of business; (d) Defendants advertise and market the Infringing Games in the United States and the State of California, and communicate directly with users in the United States and the State of California, including for the purposes of soliciting purchases of the Infringing Games by such users; (e) Defendants enter into contracts with numerous California and U.S. citizens, including each California resident that installs and plays the Infringing Games on his or her mobile device. Defendants also collect revenue from inapp purchases (or “microtransactions”) from users within the United States and the state of California; and (f) Riot is informed and believes, and on that basis alleges, that Defendants have entered into at least one agreement concerning the sale, distribution, advertising and marketing of the Infringing Games in the United States, including an agreement with a U.S. entity known as Elex Technology Holdings Co., Ltd. (“Elex”). 12. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) because this is a judicial district in which a substantial part of the events giving rise to the claims occurred, andor in which Riot’s injury was suffered. FACTS APPLICABLE TO ALL CLAIMS Riot and “League of Legends” 13. Riot is a game developer and publisher best known for its enormously popular game “League of Legends” (“LoL”). Riot, with its partners and affiliates, develops, publishes, markets, advertises, distributes, maintains, and services LoL in numerous countries throughout the world. Riot owns valid registered copyrights in LoL.
Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:1 MARC E MAYER (SBN 190969) mem@msk.com MATTHEW S BEASLEY (SBN 288070) msb@msk.com MITCHELL SILBERBERG & KNUPP LLP 11377 West Olympic Boulevard Los Angeles, California 90064-1683 Telephone: (310) 312-2000 Facsimile: (310) 312-3100 Attorneys for Plaintiff Riot Games, Inc UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 10 11 RIOT GAMES, INC., a Delaware corporation, 12 Plaintiff, 13 v 14 SHANGHAI MOONTON 15 TECHNOLOGY CO., LTD., and 16 DOES 1-10, inclusive, 17 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 28 Defendants CASE NO 2:17-cv-4986 COMPLAINT FOR: (1) COPYRIGHT INFRINGEMENT (2) TRADEMARK INFRINGEMENT (3) FALSE DESIGNATION OF ORIGIN DEMAND FOR JURY TRIAL Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:2 Plaintiff Riot Games, Inc (“Riot”) alleges as follows: PRELIMINARY STATEMENT Riot develops, publishes, distributes, and maintains the immensely popular game titled “League of Legends” (“LoL”) Riot owns the copyright and all related rights in LoL Riot also owns registered trademarks in the word mark “LEAGUE OF LEGENDS” and in LoL’s distinctive and original logo This lawsuit involves the ongoing, willful and bad faith infringement of Riot’s intellectual property rights, including its copyrights and trademarks, by 10 Shanghai Moonton Technology Co, Ltd (“Moonton”) and those working in 11 concert with it Moonton has developed and distributed a succession of mobile 12 games designed to trade off Riot’s well-known and valuable intellectual property: 13 Magic Rush: Heroes, Mobile Legends: 5v5 MOBA, and Mobile Legends: Bang 14 bang (collectively, the “Infringing Games”) Each of the Infringing Games 15 contains (or at one time contained) a vast array of elements that were directly and 16 deliberately appropriated from LoL, including but not limited to LoL’s characters, 17 artwork, map designs, and unit and monster designs And, to add insult to injury, 18 Moonton marketed and distributed certain of its games with a logo that is 19 confusingly similar to Riot’s LoL logo, using the exact same font and color scheme 20 as Riot’s LoL logo 21 Moonton not only knows that its conduct is unlawful, but has engaged 22 in overt gamesmanship Moonton created products that it knew to be infringing, 23 waited to receive an infringement claim from Riot, and in response to that claim 24 made only the most minimal adjustments while continuing to knowingly infringe 25 Most notably, after Riot discovered Mobile Legends: 5v5 MOBA and notified 26 Google that the game was infringing, Moonton purported to remove the game from 27 the Google Play store But that was simply a subterfuge Immediately after Mitchell Silberberg & Knupp LLP 28 removing Mobile Legends: 5v5 MOBA, Moonton (without notifying Riot or Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:3 Google) released a “new” game, Mobile Legends: Bang bang However, Mobile Legends: Bang bang was not a new game at all, but in fact was the exact same game as Mobile Legends: 5v5 MOBA, with some modest changes This ploy of “hide the ball” was part of Moonton’s deliberate business strategy, designed to hamper Riot’s ability to protect its intellectual property Meanwhile, even though Moonton now has received multiple infringement notices from Riot, it continues to infringe and to profit from its infringement Moonton’s conduct has harmed Riot and its business, while enriching Moonton Riot is entitled to monetary damages and injunctive and other equitable 10 relief THE PARTIES 11 12 Riot is a corporation duly organized and existing under the laws of the 13 State of Delaware, with its principal place of business in Los Angeles, California 14 Riot is informed and believes, and on that basis alleges, that Moonton 15 is a company based in the Huangpu district of Shanghai, China, with its principal 16 place of business at Flat A, Room 227, No 103, Nantangbang Road Riot is 17 informed and believes that Moonton developed each of the Infringing Games, that 18 Moonton formerly published and distributed Mobile Legends: 5v5 MOBA, and that 19 Moonton currently publishes, distributes, maintains, and updates Mobile Legends: 20 Bang bang 21 The true names and capacities, whether individual, corporate, 22 associate, or otherwise, of the defendants sued herein as Does 1-10 inclusive, are 23 unknown to Riot, which has therefore sued said defendants by such fictitious 24 names These defendants may include individuals whose real identities are not yet 25 known to Riot, but who are acting in concert with one another, often in the guise of 26 Internet aliases, in committing the unlawful acts alleged herein Riot will seek 27 leave to amend this complaint to state their true names and capacities once said Mitchell Silberberg & Knupp LLP 28 defendants’ identities and capacities are ascertained Riot is informed and Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:4 believes, and on that basis alleges, that all defendants sued herein are liable to Riot as a result of their participation in all or some of the acts set forth in this complaint (All of the aforementioned defendants collectively are referred to herein as “Defendants.”) Riot is informed and believes, and on that basis alleges, that at all times mentioned in this complaint, each of the Defendants was the agent of each of the other Defendants and, in doing the things alleged in this complaint, was acting within the course and scope of such agency JURISDICTION AND VENUE 10 This is a civil action seeking damages, injunctive relief, and other 11 equitable relief, under the Copyright Act, 17 U.S.C § 101 et seq 12 10 This Court has subject matter jurisdiction over Riot’s claims for 13 copyright and trademark infringement pursuant to 28 U.S.C §§ 1331 and 1338(a) 14 Additionally, this Court has subject matter jurisdiction pursuant to 28 U.S.C 15 § 1332 because the amount in controversy exceeds the sum or value of $75,000, 16 and the action is between a California citizen and citizens of a foreign jurisdiction 17 11 This Court also has personal jurisdiction over Defendants because 18 they have purposefully directed their activities at the United States, and at 19 California in particular, have purposefully availed themselves of the benefits of 20 doing business in California, and have established a continuing presence in 21 California Riot is informed and believes, and on that basis alleges, that, without 22 limitation: 23 (a) Defendants conduct extensive and ongoing business with customers in 24 the United States and the State of California; 25 (b) Defendants distribute the Infringing Games in the United States and 26 the State of California through the services provided by at least two California 27 companies, Apple, Inc (“Apple”) and Google, Inc (“Google”); Mitchell Silberberg & Knupp LLP 28 Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:5 (c) Defendants have directed their unlawful activities at Riot, knowing and intending that Riot would be harmed by Defendants’ conduct in the United States and primarily in the State of California, where Riot has its principal place of business; (d) Defendants advertise and market the Infringing Games in the United States and the State of California, and communicate directly with users in the United States and the State of California, including for the purposes of soliciting purchases of the Infringing Games by such users; (e) Defendants enter into contracts with numerous California and U.S 10 citizens, including each California resident that installs and plays the Infringing 11 Games on his or her mobile device Defendants also collect revenue from in-app 12 purchases (or “microtransactions”) from users within the United States and the 13 state of California; and 14 (f) Riot is informed and believes, and on that basis alleges, that 15 Defendants have entered into at least one agreement concerning the sale, 16 distribution, advertising and marketing of the Infringing Games in the United 17 States, including an agreement with a U.S entity known as Elex Technology 18 Holdings Co., Ltd (“Elex”) 19 12 Venue is proper in this District pursuant to 28 U.S.C § 1391(b) 20 because this is a judicial district in which a substantial part of the events giving rise 21 to the claims occurred, and/or in which Riot’s injury was suffered 22 FACTS APPLICABLE TO ALL CLAIMS 23 Riot and “League of Legends” 24 13 Riot is a game developer and publisher best known for its enormously 25 popular game “League of Legends” (“LoL”) Riot, with its partners and affiliates, 26 develops, publishes, markets, advertises, distributes, maintains, and services LoL 27 in numerous countries throughout the world Riot owns valid registered copyrights Mitchell Silberberg & Knupp LLP 28 in LoL Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:6 14 LoL is a fast-paced, highly competitive online game In LoL, two five-player teams of powerful champions, each with a unique design and playstyle, battle head-to-head across multiple computer-generated battlefields in a variety of game modes and types LoL blends the speed and intensity of a “real-time” strategy game with elements of fantasy role-playing and character development LoL is a style of game sometimes referred to as a MOBA, an acronym for “Multiplayer Online Battle Arena.” 15 LoL is a highly creative game with a vast array of original and protectable elements Among the original and protectable elements contained in 10 LoL are its playable “champion” characters LoL features more than 130 11 champions, each of which has a unique and distinctive appearance and possesses a 12 unique set of skills and abilities, represented in the game by a piece of original 13 artwork (also referred to as an “icon.”) At the start of each game, players select a 14 champion to play for the remainder of the game As the game progresses, LoL 15 players select from a variety of unique equipment and items, each of which has an 16 original name and identifying icon, as well as a unique set of defined properties, to 17 enhance the abilities and strength of their champion Each of the foregoing 18 elements, including the aforementioned characters, visual depictions of characters, 19 item artwork, icon artwork, as well as the combination, selection, and arrangement 20 of the foregoing elements, constitutes Riot’s protected expression 21 16 LoL’s gameplay takes place on original and distinctive computer- 22 generated battlefields or “maps,” each with different terrain, features, objectives, 23 and victory conditions The most popular of LoL’s maps is “Summoner’s Rift.” 24 Summoner’s Rift is a highly detailed map that is comprised of three roads (or 25 “lanes”), a river that divides the map in two, and a dense “jungle” populated by 26 unique computer-controlled monsters, including the Red Brambleback, the Blue 27 Sentinel, the Elder Dragon, and Baron Nashor At each end of Summoner’s Rift is Mitchell Silberberg & Knupp LLP 28 each team’s “Nexus,” which is a central base from which computer-controlled Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:7 “minions” appear (or “spawn”) and advance towards the enemy base on the map’s lanes Summoner’s Rift also contains numerous features and structures spread throughout the map, including powerful defensive turrets and “inhibitors,” which, when destroyed, provide an advantage to the destroying team The object of a Summoner’s Rift game is to destroy the opponent’s Nexus while protecting one’s own Nexus Summoner’s Rift has a distinct aesthetic appearance, manifested in its specific color palate and its unique combination of terrain and environmental features (such rocks, trees, and ancient stone structures and ruins) 17 The overall layout of Summoner’s Rift is depicted below, and it also 10 appears throughout LoL on a “mini-map” displayed as part of the game’s user 11 interface: 12 13 14 15 16 17 18 19 20 21 22 23 Every aspect and element of Summoner’s Rift has been carefully and thoughtfully 24 designed and put into place by LoL’s artists and game designers The appearance, 25 placement, design, and layout of Summoner’s Rift, is distinctive, highly original, 26 and constitutes Riot’s protected expression 27 Mitchell Silberberg & Knupp LLP 28 Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:8 18 In addition to its rights in the LoL copyright, Riot has invested enormous time, effort, and resources developing and promoting its LEAGUE OF LEGENDS name and accompanying logo As a result, the LEAGUE OF LEGENDS name and logo have become known 10 throughout the United States and the world by consumers as signifying interactive 11 entertainment and related products and services originating from Riot In addition 12 to its common law trademark, Riot is the owner of U.S registrations in the U.S 13 Patent and Trademark Office for its name and logo, including Registration Nos 14 4576134, 4576135, 4614039, 3815808, 3756125, and 4164849 Riot’s common 15 law and federally registered trademarks herein are referred to collectively as the 16 “LoL Marks.” 17 Defendants and the Infringing Games 18 Magic Rush: Heroes 19 19 In early 2016, Riot discovered the infringing game Magic Rush: 20 Heroes (“Magic Rush”) Magic Rush is a game designed for mobile devices such 21 as the iPad and Android-based smartphones and tablets Magic Rush was, and is, 22 available on mobile platforms such as the iTunes App Store and Google Play 23 Store Riot is informed and believes, and on that basis alleges, that Magic Rush 24 was developed by Moonton and distributed and marketed in the United States by 25 Elex 26 20 As first released and sold to the public, Magic Rush contained a 27 number of playable heroes or champions, each of which was a near carbon copy of Mitchell Silberberg & Knupp LLP 28 one of LoL’s champions For example, LoL features a champion known as Case 2:17-cv-04986 Document Filed 07/06/17 Page of 44 Page ID #:9 “Annie,” a young girl whose special abilities include the power to summon a toy bear to stun and attack enemies and to shoot a fan-shaped spray of fire Magic Rush featured a hero known as “Emily,” a young girl whose abilities likewise included the power to summon a toy bear to stun and attack enemies and to shoot a fan-shaped spray of fire As illustrated below, “Annie” and “Emily” not only are similar in appearance, but also share a nearly identical set of powers and skills: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Annie from LoL Emily from Magic Rush 26 27 Mitchell Silberberg & Knupp LLP 28 Case 2:17-cv-04986 Document Filed 07/06/17 Page 10 of 44 Page ID #:10 21 Dozens of other LoL champions also were blatantly copied in Magic Rush, such as Lulu (Merlynn in Magic Rush), Sona (Muse in Magic Rush), Garen (Bedivere in Magic Rush), Warwick (Jacob in Magic Rush), and many others For every one of these champions, Defendants appropriated not only the champion’s overall look and appearance, but also his or her suite and combination of unique abilities Further exemplars of Defendants’ infringement of LoL’s champions in Magic Rush are set forth in Exhibit A, which is incorporated herein by reference 22 Riot is informed and believes, and on that basis alleges, that in 2015 and 2016, thousands of copies of Magic Rush were downloaded and that Elex and 10 Moonton received tens or hundreds of thousands of dollars (if not millions of 11 dollars) in revenue in connection with Magic Rush, including from sales of virtual 12 currency or in-game items 13 23 In early 2016, Riot notified Apple and Google that Magic Rush 14 infringed its copyright in LoL, and demanded that Apple and Google remove the 15 game from the Apple iTunes Store and Google Play Store In response to Riot’s 16 infringement notice, Elex contacted Riot, and throughout 2016 Riot worked with 17 Elex in an effort to resolve Riot’s claims Riot is informed and believes, and on 18 that basis alleges, that as a result of that effort, Elex caused Moonton to make 19 certain changes to content contained in Magic Rush, including changes to the 20 appearances and attributes of Magic Rush’s heroes Riot did not agree to release 21 any of its claims against Elex or Moonton The Mobile Legends Games 22 23 24 Riot is informed and believes, and on that basis alleges, that in 2016, 24 at the same time Riot was working with Elex to resolve its infringement claims 25 concerning Magic Rush, Moonton – with full knowledge of Riot’s rights in LoL 26 and Riot’s pending infringement claims – was developing and preparing to publish 27 a second mobile game also designed to trade off Riot’s intellectual property rights Mitchell Silberberg & Knupp LLP 28 ... business with customers in 24 the United States and the State of California; 25 (b) Defendants distribute the Infringing Games in the United States and 26 the State of California through the services... States and the State of California, and communicate directly with users in the United States and the State of California, including for the purposes of soliciting purchases of the Infringing Games... conduct in the United States and primarily in the State of California, where Riot has its principal place of business; (d) Defendants advertise and market the Infringing Games in the United States and